Halifax Nova Scotia Real Estate
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Halifax Real Estate Information
Amount of Your Down Payment
Your down payment is paid in cash and is not included as part of the loan amount. The bigger your initial down payment, the smaller your loan, which reduces the amount of your payments.
How much you'll put down depends on the cash you have available and the amounts you'll need for closing costs and prepaid property taxes and homeowners' insurance.
If you put less than 25% down on most loans, you'll be asked to protect the lender by carrying private mortgage insurance (PMI) usually offered through the bank. Carrying PMI ensures that the debt is repaid if you default on the loan. This adds approximately an extra half a percent onto the loan. Each percentage under 25% has different percentages of the home's value that has to be paid in order to insure the home's mortgage. The lender will arrange for the insurance, and the one-time premium (between 1.5 and 3 per cent) of the mortgage amount) is usually added to the loan amount, although it can be paid by the borrower in a lump-sum payment in advance.
Further Information:
Planning Your Home Purchase
Checking Your Credit Rating
Pre-qualification and Pre-approval on a Mortgage
Becoming an Educated Buyer: Research Neighbourhoods
Becoming an Educated Buyer: Your List of Home Requirements
Assess Your Finances: Checklist
Assess Your Finances: Compare buying with renting
Assess Your Finances: Calculating the cost of homeownership
Assess Your Finances: What you can deduct
Interest Rates and How They Change
Closing Costs
Other Closing Costs
Figuring Out Your Monthly Income
Figuring Out Your Monthly Debt
Amount of Your Down Payment
How Much House Can You Afford?